Companies could apply for small business loans at Zion Finance - Lend Up using a simple application process.
You've picked out a business name, got a sales and marketing strategy written down and are ready to open up shop. Now, where are you going to get the money to execute your plan? A lack of funding could stall your company's grand opening. To get operations started as soon as possible, look at a wide variety of opportunities to apply for financing.*
Research options for financing programs
Business owners often think of big financial institutions and banks when they consider applying for business financing. However, you should consider all your options, including grants, non-bank lenders, and other sources. You can research potential lenders or organizations that will provide you with the money by using the loans and grants search tool available at the U.S. Small Business Administration.
Here are ways you can get funding:
Government grants
In addition to borrowing money from traditional lenders, consider grants from local or state governments. Some government programs allow certain businesses to apply for grant money, such as for start-ups that develop energy-efficient devices or help improve the local community. Some of these grants have specific requirements. For example, a business receiving the grant may have to match the funds or use the grant along with a business loan.
SBA
The SBA also offers various loan programs that allow new businesses to get financing. Business owners should consider whether they are able to qualify for loans through SBA's loan program, such as whether they have reasonable invested equity or have already invested alternative financial resources, including personal assets, into their businesses before applying.
"Some government grants are not free money."
Friends and family
Another option for business owners is to ask their friends and family to invest in their companies. It’s a good thing to be familiar with the people you decide to borrow money from. This can also increase flexibility in discussing the terms of repayment. Entrepreneur magazine reported in a study on private financing that about 42 percent of private investors who funded someone else's business in the last three years were close family members or spouses. Despite those advantages, there is also the risk that friends or family will have emotional ties to their money. If the business were to grow at a rate slower than anticipated or ultimately not succeed, this could make social and/or family gatherings difficult.
Merchant Cash Advances or Daily Repayment Loans
Many businesses utilize Merchant Cash Advances or Daily Repayment Loans to fund their business. In most cases these lenders do not fund new businesses. Unfortunately, these lenders require a business to have been in operation for a year before they will consider lending to them. In addition, these lenders have repayment terms that require high daily payment and are not optimal for newly formed businesses.
Angel investors and venture capitalists
Individual investors are always looking to fund up-and-coming businesses that have potential to make money. However, they may ask that business owners give up 50-70 percent of the ownership of your company before they provide the funds. Owners should decide whether it is worth it to allow an angel investor or venture capitalist to seize majority control of their companies before proceeding.
Angel investors may demand a large percentage of company ownership in exchange for funds.
Personal credit or assets
While you could invest your own funds into the business, there are plenty of reasons to keep business and personal credit separate. When using your personal credit cards or other assets, you could run up charges quickly without even knowing, putting you at risk for falling behind on your bills and having your belongings repossessed.
Zion Finance - Lend Up understands what new business owners need
While business owners have all of these other options, they could still run into problems with applying and approval. Many business owners use personal credit cards to finance their business. In addition, some utilize equity they have built in their home by obtaining a home equity loan. This can be risky for those who may see their credit significantly impacted if they fail to make payments on their credit cards or home equity loans. In addition, an owner can lose their home to foreclosure if the business does not perform as planned. Think carefully before you mix your business and personal assets.
By applying for a business loan from an alternative lender like Zion Finance - Lend Up, businesses don't have to fill out stacks of paperwork or produce proof of a lengthy business history. Business owners can fill out a quick application and present three documents to get approval from Zion Finance - Lend Up sooner than with traditional lenders. Apply for a loan by calling a representative or filling out an online application at Zion Finance - Lend Up 24 hours a day, seven days a week.
WE CAN HELP YOU WITH A QUICK LOAN WITHIN 48HRS!
Do you need a quick loan today? Zion Finance - Lend Up can help you with the loan you need, we offer personal loans and loans for business development. To apply e-mail: zionloanfirm.ltd@aol.com
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